IRS Adjusts Standard Mileage Rates Midyear for 2022

June 16, 2022

.

.

To better reflect rising gas prices, the IRS reimbursement rate will increase to 62.5 cents per mile starting July 1, up from 58.5 cents.

Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. It is also used by many businesses as a way to calculate amounts for reimbursement to their employees for business mileage while using a personal car.

Additionally, the new rate for deductible medical or moving expenses (only available for active-duty members of the military) will be up from 18 cents to 22 cents. The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.

This is the second rate increase in the mileage rate since last year.

In January 2022, the rates were increased 2.5 cents per mile for driving a personal car for business and 2 cents per mile for medical and moving.

Remember, the IRS rate takes into account depreciation, insurance and other costs associated with operating a vehicle.

It is a standardized rate that can be used instead of taking a deduction for actual costs.

Please consult with your accountant to discuss which is the best method for your situation.

Smith Miller & Buff, CPA, PA is a full service CPA firm and would be happy to assist you with your business and individual tax needs.

Related

New Face on Board at SMB; Greg Bunner and Mike Hargadon Named Tax Managers

To better reflect rising gas prices, the IRS reimbursement rate will increase to 62.5 cents per mile starting July 1...

Hobby or Business

Hobby or Business?

Do you have a sideline activity that you think of as a business? From this sideline activity, are you claiming tax loss…

The Fed Pivots to Fight Inflation

On December 15, 2021, the Federal Open Market Committee (FOMC) of the Federal Reserve System made a significant shift i…